Originally Posted by
mispoken
This is getting further from the side hustle discussion; but the Tesla bears are not visionaries (and they’ve never been right thus far). Musk is the visionary and the Wall Street talking heads are the ones that love their metrics and can’t see the potential. Electric vehicles are along a small part of wha they will do in the future. Solar, storage, space, internet, HVAC and don’t forget about their subscription model for adding features to your Tesla. The thing with taking a negative stance and outlook is that it usually is the smarter SOUNDING argument. Those of us who believe in the future of Tesla and what Elon is doing are “just crazy dreamers”, but Elon is the ultimate capitalist. The talking heads just cannot see it. Tesla is the most misunderstood company on the planet IMO.
The same goes for the state of the market in general. “We are due for a correction” (which implies the market is currently incorrect?), yes it’s a foregone conclusion. The market will go down. Maybe violently. It happens; but boy do the people that “called it” feel smart. Meanwhile; if I went from 100 back down to 75, the pessimist that started calling “the top” at 25 missed out on a gain of 50. But again, they sure sound smart!
One of my favorite articles on the subject of pessimism, in general, is by Morgan Housel who got his start at The Motley Fool. Worth a read! He does a good job of exploring the psychology of investing.
https://www.collaborativefund.com/bl...-of-pessimism/
I LOVE TSLA the company. I own a Model S. I believe in its future. But as great as the company is, they'll need to have a cure for cancer to justify the current price. Folks have gone overboard on the Tesla story. We've seen this before with story stocks. 2000s investors went overboard with internet stocks. The Nifty 50 in the 60s folks thought you can buy great companies at any price. Then you have the Tulip mania in the 1600s where irrational prices drove one of the biggest asset bubbles in history.
On the other hand, I prefer to invest towards safety, or invest with a Margin of Safety to be specific. A good example of this is Fiat-Chrysler(FCAU). Strong balance sheet, positive cash flow from operations, plenty of spare cash yet priced for liquidation in March despite all this information clearly available on their financial statements. Up 115% since then and still trading below its intrinsic value based on worse case future free cashflows.
Again I comend all the folks that have made substantial gains from stocks like TSLA, NFLX, Pelaton etc. It's better to be lucky than good. Just a friendly reminder that history shows that with stocks trading at extremely high valuations, when the music stops, an eyewatering, vomit inducing fall in pricing happens shortly thereafter
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